With the cryptocurrency market on fire right now, new startups are emerging in the sector and seeing meteoric rise in valuations fueled by the frenzy. One such Indian startup-Coinswitch Kuber, has raised $25Mn in a funding round led by Tiger Global, which valued the firm at $500 Mn.
Yes, with the Indian startup sector on fire right now, justifying a $500 million valuation has become an easy task. Over the last month, a flurry of unicorns have risen in the world’s second largest Internet market, and with Indians warming up to crypto more and more, I am not surprised that startups like Coinswitch Kuber are already half way there.
To put this ride to the stars in context, the current ride (which is its Series B), comes just three months after its Series A round, where it had raised $15Mn.
Coinswitch Kuber is a crypto investing platform dedicated towards serving young Indians, which is a ripe market right now, stoked by the sudden rise in Bitcoin value and the entire GameStop fiasco. The company allows customers to buy miniscule amounts of cryptos (for example, you can buy Bitcoin worth 100 INR from the platform), thus encouraging those with lighter pockets to also get in on the crypto hype.
The firm says that it has 4.5Mn users, more than half of which are aged 25 years or below.
However, this happens at a time where the future of cryptocurrencies in India remains uncertain. The government is possibly considering a ban on all private cryptocurrencies, which means that in the future, platforms like Coinswitch Kuber may become illegal in the country. Finance Minister Nirmala Sitharaman did suggest that the government’s approach to cryptos will be calibrated, but as of right now, Coinswitch Kuber is a risky investment.
With the being said, cryptocurrencies and blockchain technology seem on the cusp of mainstream acceptance, especially with the most recent Coinbase IPO, which, according to me, is the biggest event in the world of cryptocurrencies so far.